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“Unlike the mediocre, intrepid spirits seek victory over those things that seem impossible.” – Ferdinand Magellan
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
Last week marked the sixth straight week of gains for the S&P 500, but the tone to kick off this week has been subdued. Pre-market equity futures have been lower all morning and picking up steam to the downside. European shares are down close to 1% with Germany leading the way as PPI fell 0.5% or more than twice the consensus forecast for a decline of 0.2%. Treasury yields and crude oil, which are also both higher, aren’t helping the sentiment backdrop for equities either.
The only economic report on the calendar this morning is Leading Indicators at 10 AM, but it will be a busy week of data in terms of both earnings and economic reports.
Gold is trading up nearly 1% this morning and on pace for its fifth straight daily gain and fourth record closing high in a row. It’s been an amazing year for gold, and one example of that strength is that this current streak of record-closing highs is the longest since a six-day streak at the end of…late September.
If today’s gains hold, it would be the 43rd time this year that the stock closed at a record high. As shown in the chart below, that would rank as the second most record closing highs for a calendar year, trailing only the 57 record closing highs in 1979. With 49 trading days left in the year, that record in 1979 may not necessarily be destined, but it’s certainly within reach.
Along with the surging price of gold, gold miner stocks have been on a nice run this year. While gold is up just under 33% for the year, the S&P 1500 Gold Industry index has rallied even more with a gain of 37.3%.
Logically, it would make sense that gold stocks have been rallying by similar amounts as the commodity, but that has hardly been the case over the long term. Since the start of 1995, the S&P 1500 Gol Industry has rallied 57.1%, but gold is up more than ten times that at 615.3%!